Fortinet (FTNT) closed at $84.86 in the latest trading session, marking a +1.7% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.07% for the day. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.
Heading into today, shares of the network security company had lost 0.91% over the past month, lagging the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. The company is predicted to post an EPS of $0.63, indicating constancy compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.7 billion, up 12.86% from the year-ago period.
FTNT's full-year Zacks Consensus Estimates are calling for earnings of $2.52 per share and revenue of $6.75 billion. These results would represent year-over-year changes of +6.33% and +13.29%, respectively.
Investors might also notice recent changes to analyst estimates for Fortinet. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.27% rise in the Zacks Consensus EPS estimate. Fortinet is currently a Zacks Rank #3 (Hold).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 33.1. Its industry sports an average Forward P/E of 68.44, so one might conclude that Fortinet is trading at a discount comparatively.
It's also important to note that FTNT currently trades at a PEG ratio of 2.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FTNT's industry had an average PEG ratio of 2.77 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Fortinet, Inc. (FTNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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